By: Lindsay S.B. No. 841
(In the Senate - Filed March 1, 2005; March 10, 2005, read
first time and referred to Committee on Intergovernmental
Relations; May 3, 2005, reported adversely, with favorable
Committee Substitute by the following vote: Yeas 5, Nays 0;
May 3, 2005, sent to printer.)
COMMITTEE SUBSTITUTE FOR S.B. No. 841 By: Deuell
A BILL TO BE ENTITLED
AN ACT
relating to the creation of the Greater 1960 Improvement District.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle C, Title 4, Special District Local Laws
Code, is amended by adding Chapter 3855 to read as follows:
CHAPTER 3855. GREATER 1960 IMPROVEMENT DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 3855.001. DEFINITIONS. In this chapter:
(1) "Board" means the board of directors of the
district.
(2) "District" means the Greater 1960 Improvement
District.
Sec. 3855.002. GREATER 1960 IMPROVEMENT DISTRICT. The
Greater 1960 Improvement District is a special district created
under Section 59, Article XVI, Texas Constitution.
Sec. 3855.003. PURPOSE; DECLARATION OF INTENT. (a) The
creation of the district is essential to accomplish the purposes of
Sections 52 and 52-a, Article III, and Section 59, Article XVI,
Texas Constitution, and other public purposes stated in this
chapter. By creating the district and in authorizing the City of
Houston, Harris County, and other political subdivisions to
contract with the district, the legislature has established a
program to accomplish the public purposes set out in Section 52-a,
Article III, Texas Constitution.
(b) The creation of the district is necessary to promote,
develop, encourage, and maintain employment, commerce,
transportation, housing, tourism, recreation, the arts,
entertainment, economic development, safety, and the public
welfare in the area of the district.
(c) This chapter and the creation of the district may not be
interpreted to relieve Harris County or the City of Houston from
providing the level of services provided as of the effective date of
this Act to the area in the district. The district is created to
supplement and not to supplant the county services provided in the
area in the district.
Sec. 3855.004. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)
The district is created to serve a public use and benefit.
(b) All land and other property included in the district
will benefit from the improvements and services to be provided by
the district under powers conferred by Sections 52 and 52-a,
Article III, and Section 59, Article XVI, Texas Constitution, and
other powers granted under this chapter.
(c) The creation of the district is in the public interest
and is essential to:
(1) further the public purposes of developing and
diversifying the economy of the state;
(2) eliminate unemployment and underemployment; and
(3) develop or expand transportation and commerce.
(d) The district will:
(1) promote the health, safety, and general welfare of
residents, employers, employees, visitors, and consumers in the
district, and of the public;
(2) provide needed funding for the district to
preserve, maintain, and enhance the economic health and vitality of
the district as a community and business center; and
(3) promote the health, safety, welfare, and enjoyment
of the public by providing pedestrian ways and by landscaping and
developing certain areas in the district, which are necessary for
the restoration, preservation, and enhancement of scenic beauty.
(e) Pedestrian ways along or across a street, whether at
grade or above or below the surface, and street lighting, street
landscaping, and street art objects are parts of and necessary
components of a street and are considered to be a street or road
improvement.
(f) The district will not act as the agent or
instrumentality of any private interest even though the district
will benefit many private interests as well as the public.
Sec. 3855.005. DISTRICT TERRITORY. (a) The district is
composed of the territory described by Section 2 of the Act enacting
this chapter, as that territory may have been modified under:
(1) Subchapter J, Chapter 49, Water Code; or
(2) other law.
(b) The boundaries and field notes of the district contained
in Section 2 of the Act enacting this chapter form a closure. A
mistake in the field notes or in copying the field notes in the
legislative process does not in any way affect the district's:
(1) organization, existence, and validity;
(2) right to impose and collect an assessment; or
(3) legality or operation.
Sec. 3855.006. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES.
All or any part of the area of the district is eligible to be
included in:
(1) a tax increment reinvestment zone created by the
City of Houston under Chapter 311, Tax Code;
(2) a tax abatement reinvestment zone created by the
City of Houston under Chapter 312, Tax Code; or
(3) an enterprise zone created by the City of Houston
under Chapter 2303, Government Code.
Sec. 3855.007. APPLICABILITY OF MUNICIPAL MANAGEMENT
DISTRICTS LAW. Except as otherwise provided by this chapter,
Chapter 375, Local Government Code, applies to the district.
Sec. 3855.008. LIBERAL CONSTRUCTION OF CHAPTER. This
chapter shall be liberally construed in conformity with the
findings and purposes stated in this chapter.
[Sections 3855.009-3855.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 3855.051. BOARD OF DIRECTORS; TERMS. The district is
governed by a board of 15 directors who serve staggered terms of
three years, with five directors' terms expiring June 1 of each
year.
Sec. 3855.052. APPOINTMENT OF DIRECTORS. The members of
the Commissioners Court of Harris County shall appoint directors
from persons recommended by the board. A person is appointed if a
majority of the members of the governing body vote to appoint that
person.
Sec. 3855.053. QUORUM. For purposes of determining the
requirements for a quorum of the board, the following are not
counted:
(1) a board position vacant for any reason, including
death, resignation, or disqualification; or
(2) a director who is abstaining from participation in
a vote because of a conflict of interest.
Sec. 3855.054. CONFLICTS OF INTEREST; ONE-TIME AFFIDAVIT.
(a) Except as provided by this section:
(1) a director may participate in all board votes and
decisions; and
(2) Chapter 171, Local Government Code, governs
conflicts of interest for directors.
(b) Section 171.004, Local Government Code, does not apply
to the district. A director who has a substantial interest in a
business or charitable entity that will receive a pecuniary benefit
from a board action shall file a one-time affidavit declaring the
interest. An additional affidavit is not required if the
director's interest changes. After the affidavit is filed with the
board secretary, the director may participate in a discussion or
vote on that action if:
(1) a majority of the directors have a similar
interest in the same entity; or
(2) all other similar business or charitable entities
in the district will receive a similar pecuniary benefit.
(c) A director who is also an officer or employee of a public
entity may not participate in the discussion of or vote on a matter
regarding a contract with that public entity.
(d) For purposes of this section, a director has a
substantial interest in a charitable entity in the same manner that
a person would have a substantial interest in a business entity
under Section 171.002, Local Government Code.
Sec. 3855.055. INITIAL DIRECTORS. (a) The initial board
consists of the following directors: Pos. No. Name of Director
1 Tommie Ripley
2 Tim Duffy
3 Bert Williams
4 Louis Garcia
5 Walter Plonski
6 Karla Hickman
7 Seth Sharr
8 Frank Jeanes
9 Raj Natarajan
10 Rodney Anderson
11 Jimmie Bergeron
12 Leslie Lopez
13 Murtaza Zohar
14 Jay Porter
15 Larry Lipton
(b) Of the initial directors, the terms of directors
appointed for positions 1 through 5 expire June 1, 2006, the terms
of directors appointed for positions 6 through 10 expire June 1,
2007, and the terms of directors appointed for positions 11 through
15 expire June 1, 2008.
(c) Section 3855.052 does not apply to this section.
(d) This section expires September 1, 2009.
[Sections 3855.056-3855.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 3855.101. ADDITIONAL POWERS OF DISTRICT. The district
may exercise the powers given to a corporation under Section 4B,
Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas
Civil Statutes), including the power to own, operate, acquire,
construct, lease, improve, and maintain a project described by that
section.
Sec. 3855.102. NONPROFIT CORPORATION. (a) The board by
resolution may authorize the creation of a nonprofit corporation to
assist and act for the district in implementing a project or
providing a service authorized by this chapter.
(b) The nonprofit corporation:
(1) has each power of and is considered for purposes of
this chapter to be a local government corporation created under
Chapter 431, Transportation Code; and
(2) may implement any project and provide any service
authorized by this chapter.
(c) The board shall appoint the board of directors of the
nonprofit corporation. A director of the corporation is not
required to reside in the district.
(d) The board of directors of the nonprofit corporation
shall serve in the same manner as the board of directors of a local
government corporation created under Chapter 431, Transportation
Code.
Sec. 3855.103. AGREEMENTS; GRANTS. (a) The district may
make an agreement with or accept a gift, grant, or loan from any
person.
(b) The implementation of a project is a governmental
function or service for the purposes of Chapter 791, Government
Code.
Sec. 3855.104. AUTHORITY TO CONTRACT FOR LAW ENFORCEMENT.
To protect the public interest, the district may contract with a
qualified party, including Harris County or the City of Houston, to
provide law enforcement services in the district for a fee.
Sec. 3855.105. MEMBERSHIP IN CHARITABLE ORGANIZATIONS. The
district may join and pay dues to an organization that:
(1) enjoys tax-exempt status under Section 501(c)(3),
(4), or (6), Internal Revenue Code of 1986; and
(2) performs a service or provides an activity
consistent with the furtherance of a district purpose.
Sec. 3855.106. ECONOMIC DEVELOPMENT PROGRAMS AND OTHER
POWERS RELATED TO PLANNING AND DEVELOPMENT. (a) The district may
establish and provide for the administration of one or more
programs, for a term of one year or less, to promote state or local
economic development and to stimulate business and commercial
activity in the district, including programs to:
(1) make loans and grants of public money; and
(2) provide district personnel and services.
(b) The district has all of the powers of a municipality
under Chapter 380, Local Government Code.
Sec. 3855.107. NO EMINENT DOMAIN. The district may not
exercise the power of eminent domain.
[Sections 3855.108–3855.150 reserved for expansion]
SUBCHAPTER D. FINANCIAL PROVISIONS
Sec. 3855.151. DISBURSEMENTS AND TRANSFERS OF MONEY. The
board by resolution shall establish the number of directors'
signatures and the procedure required for a disbursement or
transfer of the district's money.
Sec. 3855.152. MONEY USED FOR IMPROVEMENTS OR SERVICES.
(a) The district may acquire, construct, finance, operate, or
maintain any improvement or service authorized under this chapter
or Chapter 375, Local Government Code, using any money available to
the district.
(b) An improvement or service authorized under this chapter
or Chapter 375, Local Government Code, may only be financed for a
term of one year or less.
Sec. 3855.153. PETITION REQUIRED FOR FINANCING SERVICES AND
IMPROVEMENTS. (a) The board may not finance a service or
improvement project under this chapter unless a written petition
requesting that service or improvement has been filed with the
board.
(b) A petition requesting a project financed by assessment
must be signed by:
(1) the owners of a majority of the assessed value of
real property in the district subject to assessment according to
the most recent certified tax appraisal roll for Harris County; or
(2) at least 50 owners of real property in the
district, if more than 50 persons own real property in the district
according to the most recent certified tax appraisal roll for
Harris County.
Sec. 3855.154. METHOD OF NOTICE FOR HEARING. The district
may give the notice required by Section 375.115(c), Local
Government Code, by personal delivery or certified United States
mail or an equivalent service that can provide a record of mailing
or delivery.
Sec. 3855.155. ASSESSMENTS; LIENS FOR ASSESSMENTS.
(a) The board by resolution may impose and collect an assessment
for any purpose authorized by this chapter.
(b) An assessment, a reassessment, or an assessment
resulting from an addition to or correction of the assessment roll
by the district, penalties and interest on an assessment or
reassessment, an expense of collection, and reasonable attorney's
fees incurred by the district:
(1) are a first and prior lien against the property
assessed;
(2) are superior to any other lien or claim other than
a lien or claim for county, school district, or municipal ad valorem
taxes; and
(3) are the personal liability of and a charge against
the owners of the property even if the owners are not named in the
assessment proceedings.
(c) The lien is effective from the date of the board's
resolution imposing the assessment until the date the assessment is
paid. The board may enforce the lien in the same manner that the
board may enforce an ad valorem tax lien against real property.
(d) The board may make a correction to or deletion from the
assessment roll that does not increase the amount of assessment of
any parcel of land without providing notice and holding a hearing in
the manner required for additional assessments.
Sec. 3855.156. FIXED ASSESSMENT RATE. An assessment based
on the taxable value of real property is fixed at 6.5 cents per $100
of assessed valuation of taxable property in the district,
according to the most recent certified tax appraisal roll for
Harris County.
Sec. 3855.157. CERTAIN RESIDENTIAL PROPERTY EXEMPT FROM
ASSESSMENT. The district may not impose an assessment on a
single-family detached residence or a residential duplex, triplex,
or fourplex.
Sec. 3855.158. LIMIT ON USE OF MONEY. The district's
administrative costs, including salaries and office expenses, may
not be more than 10 percent of the district's annual receipts from
all sources after the first year of operation of the district.
Sec. 3855.159. UTILITY PROPERTY EXEMPT FROM IMPACT FEES AND
ASSESSMENTS. The district may not impose an impact fee or
assessment on the property, including the equipment,
rights-of-way, facilities, or improvements, of:
(1) an electric utility or a power generation company
as defined by Section 31.002, Utilities Code;
(2) a gas utility as defined by Section 101.003 or
121.001, Utilities Code;
(3) a telecommunications provider as defined by
Section 51.002, Utilities Code; or
(4) a person who provides to the public cable
television or advanced telecommunications services.
Sec. 3855.160. MUNICIPALITY NOT REQUIRED TO PAY DISTRICT
OBLIGATIONS. Except as provided by Section 375.263, Local
Government Code, a municipality is not required to pay a bond, note,
or other obligation of the district.
Sec. 3855.161. COMPETITIVE BIDDING. Section 375.221, Local
Government Code, applies to the district only for a contract that
has a value greater than $25,000.
Sec. 3855.162. ASSESSMENT ABATEMENTS. The district may
grant in the manner authorized by Chapter 312, Tax Code, an
abatement for an assessment owed to the district.
[Sections 3855.163-3855.200 reserved for expansion]
SUBCHAPTER E. DISSOLUTION
Sec. 3855.201. DISSOLUTION OF DISTRICT WITH OUTSTANDING
DEBT. (a) The board may dissolve the district regardless of
whether the district has debt. Section 375.264, Local Government
Code, does not apply to the district.
(b) If the district has debt when it is dissolved, the
district shall remain in existence solely for the purpose of
discharging its debts. The dissolution is effective when all debts
have been discharged.
SECTION 2. As of the effective date of this Act, the Greater
1960 Improvement District includes all territory contained in the
following described area:
The commercial and common properties located in Harris County
along FM 1960 beginning from the west at State Highway 249 and
ending in the east at Interstate Highway 45.
SECTION 3. A petition filed under Section 3855.153, Special
District Local Laws Code, as added by this Act, may be dated before
the effective date of this Act.
SECTION 4. The legislature finds that:
(1) proper and legal notice of the intention to
introduce this Act, setting forth the general substance of this
Act, has been published as provided by law, and the notice and a
copy of this Act have been furnished to all persons, agencies,
officials, or entities to which they are required to be furnished by
the constitution and laws of this state, including the governor,
who has submitted the notice and Act to the Texas Commission on
Environmental Quality;
(2) the Texas Commission on Environmental Quality has
filed its recommendations relating to this Act with the governor,
lieutenant governor, and speaker of the house of representatives
within the required time;
(3) the general law relating to consent by political
subdivisions to the creation of districts with conservation,
reclamation, and road powers and the inclusion of land in those
districts has been complied with; and
(4) all requirements of the constitution and laws of
this state and the rules and procedures of the legislature with
respect to the notice, introduction, and passage of this Act have
been fulfilled and accomplished.
SECTION 5. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2005.
* * * * *